05-827Council File # �S� O o��
Green Sheet # �2,"�"'11(�
RESOLUTION
OF SAINT PAUL, NIINNESOTA
Presented By
Referred To
sa
Committee: Date
1 RESOLUTION RECITING A PROPOSAL FOR A
2 FINANCING PROGRAM FOR A MULTI-FAMILY RE1�3TAL
3 HOUSING DEVELOPMENT, GIVING APPROVAL
4 TO THE PROJECT AND THE PROGRAM
5 PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C,
6 AUTHORIZING THE HOUSING AND REDEVELOPMENT
7 AUTHORITY TO ISSUE HOUSING REVENUE BONDS
8 AND AUTHORIZING THE PREPARATION OF NECESSARY
9 DOCUMENTS AND MATERIALS IN CONNECTION
10 WTI'H THE SAID PROJECT AND PROGRAM
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(CARLETON LOFTS PROJECT)
12 (a) Minnesota Statutes, Chapter 462C (the "AcY') confers upon cities, or housing and
13 redevelopment authorities or port authorities authorized by ordinance to exercise on behalf of a
14 city the powers conferred Uy the Act, the power to issue revenue bonds to finance a program for
15 the purposes of planning, administering, maldng or purchasing loans with respect to one ar more
16 multi-family housing pro}ect developments within the boundaries of the city;
17 (b) 'I'tie Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
18 (the "HRA") has been designated, by ordinance, to exercise, on behalf of the City of Saint Paul,
19 Minnesota (the "City") the powers conferred by Minnesota Statutes, Secrion 462CA1 to
20 462C.081;
21 (c) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
22 (the "HRA"), has received a proposal from University Carleton Development, LP, a limited
23 partnership organized under the laws of Minnesota (the "Partnership"), that the HRA undertake a
24 program (the "Housing Program") to finance a Project hereinafter described, through the
25 issuance of revenue bonds (the "Bonds") pursuant to the Act;
26 (d) The Project to be financed by the Bonds is the remodeling of existing buildings
27 for use as a rental housing faciliry containing approxunately 170 housing units located at 2285 —
28 2341 University Avenue West in the City of Saint Paul, Minnesota (the "ProjecY');
29 (e) The proposal ca11s for the HRA to loan the proceeds realized upon the sale of the
30 Bonds to the Partnership pursuant to a revenue agreement or agreements wherein the Partnership
31 will be obligated to make payments at the times and in amounts sufficient to provide for the
32 prompt payment of principal of, premium, if any, and interest on the Bonds and all costs and
33 expenses of the HRA and the City incident to the issuance and sale of the Bonds;
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( fl The Ciry desires to facilitate the acquisition and construction of a multifamily
housing facility within the City; and the Project will assist the City in achieving these objectives;
(g) A public hearing on the Housing Program and the Project was held on this date
following duly published notice, at which time all persons that desired to speak were heard;
5 (h) No public official of the City has either a direct or indirect financial interest in the
6 Project nor will any public official either d'uectly or indirectly benefit financially from the
7 Project; and
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint
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Paul, Minnesota, as follows:
1. The City hereby gives preliminary approval to the proposal of the
Partnerslvp that the City undertake the Project, described above, and the program of financing
therefor, pursuant to Minnesota Statutes, Chapter 462C, consisfing of the acquisition,
construction and equipping of a multi-family rental housing facility within the City pursuant to
the Partnership's specifications and to a revenue agreement between the HRA and the Partnership
on such terms and condifions with provisions for revision from time to rime as necessary so as to
produce income and revenues sufficient to pay, when due, the principal and interest on the Bonds
in the total principal amount of approxunately $2b,000,000 to be issued pursuant to the Act to
finance the acquisition and construction of the Project; and said agreement may also provide for
the entire interest of the Partnership therein to be mortgaged to the purchasers of the Bonds, or a
trustee far the holder(s) of the Bonds; and the City, acting by and through the HRA hereby
undertakes preliminarily to issue its revenue bonds in accordance with such terms and
conditions;
2. On the basis of information auailable to the City it appears, and the City
hereby finds, that the Project constitutes a mulfi-family housing development within the meaning
of subdivision 5 of Section 462C.02 of the Act; that the availability of the financing under the
Act and the willingness of the City to furnish such financing will be a substantial inducement to
the Partnership to undertake the Project, and that the effect of the Project, if undertaken, will be
to encourage the provision of mul6-family rental housing opportunities to residents of the City,
and to promote more intensive development and use of land within the City;
30 3. The Project, and the program to finance the Project by the issuance of the
31 Bonds, is hereby gven approval by the City subject to final approval by the HRA, the
32 Partnership and the purchasers of the Bonds as to ultimate details of the financing of the Project,
33 4. Pursuant to Chapter 72, Saint Paul, Minnesota Administrative Code, the
34 City hereby authorizes and directs the Housing and Redevelopment Authority of the City of
35 Saint Paul, Minnesota (the "HRA") to issue the Bonds to finance the Project and to take all
36 actions necessary or desirable in connection therewith, and no further approval or authorizafion
37 of the City shall be required; provided that the HRA may, in its discrerion, authorize the Board to
38 issue the Bonds and to implement the program approved hereby, and the City hereby consents
39 thereto;
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1 5. The Partnership bas agreed and it is hereby determiued that any and ail
2 costs incurred by the City or the HRA in connection with the financing of the Project whether or
3 not the Project is carried to complerion and whether or not approved by HRA will be paid by the
4 Partnership:
5 6. Briggs and Morgan, Professional Associafion, acting as bond counsel, and
6 such investment bankers as may be selected by Partnerslup, with the consent of the HRA, aze
7 authorized to assist in the preparafion and review of necessary documents relating to the Project
8 and the financing prograui therefor, to consult with the City Attorney, Partnership and the
9 purchaser of the Bonds as to the maturi6es, interest rates and other terms and provisions of the
10 Bonds and as to the covenants azad other provisions of the necessary documents and submit such
11 documents to the HRA for final approval;
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7. Nothing in this Resolution or the documents prepared pursuant
hereto shall authorize the expenditure of any municipal funds on the Project other than the
revenues derived from the Project or otherwise granted to the City or the HRA. The
Bonds shall not constitate a charge, lien or encumbrance, legal or equitable, upon any
property or funds of the City or the HRA except the revenue and proceeds pledged to the
payment thereof, nor shall the City or the J3RA be subject to any liability thereon. The
holders of the Bonds shall never have the right to compel any exercise of the taxing power
of the City or I3RA to pay the outstanding principal on the Bonds or the interest thereon,
or to enforce payment thereon against any property of the City or the HRA. The Bonds
shall recite in substance that Bonds, including the interest thereon, are payable solely from
the revenue and proceeds pledged to the payment thereof. The Bonds shall not constitute a
debt of the City or HRA within the meaning of any constitutional or statutory limitation.
24 8. In anticipation of the issuance of the Bonds to finance all ar a portion of
25 the Project, and in arder that completion of the Project will not be unduly delayed when
26 approved, the Partnership is hereby authorized to make such expenditures and advances towazd
27 payment of that portion of the costs of the Project to be financed from the proceeds of the Bonds,
28 as the Partnership considers necessary, including the use of internn, short-term financing, subject
29 to reimbursement from the proceeds of the Bonds if any when delivered but otherwise without
30 liability on the part of the City or the HRA.
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Adopted by the City Council of the City of Saint Paul, Minnesota this 7th day of
September, 2005.
Yeas Na s Absent
Benauav ✓
Bosh�om �
�Ian1S ✓
Helgen ✓
Lantry �
Mont omery �
Thune �
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Adoptaon Certified by Council Secretary
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1802358v1
Requested by Department of:
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Form Appro b� City orney
Adopted by Council: Date �� �� ���y: � �
OS- S�?
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
' PE - Planning & Economic Development
' Confact Person 8 Phone:
, Diane Nordquist
266-6640
rolust Be on
� 07-SEP-OS
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N i
oate mrtiatetl: i
�-A��-0S ; Green Sheet NO: 3027770
� I ueDarunen[ aent�orerson mmawa�e
0 �12nninE & Economic Develo eam Leader/AI Carls � �
Assign 1 �lannine & Economic Develon I Accountine ' ( �:
Number ' `�`�
2 lann n¢ & Ecouom c Develoo � Deoartment Director � iC�
For
RoUting 3 �CiN Attocoev � Pete McCall '
Order 4 avor's Offce I Mavo /ASS'staut i
I - 5 Council Jav Benaoav �
6 '� �'� k i (5N Clerk !
Total # of Sigoature Pages �(Clip All Locatio[u for Signature)
Public Hearing and Adoption Of A Resolu6on Authorizing Prelimivary Approval forthe HRA to Issue up to $26,OOQ000 inTaac-Exempt
Housing Revenue Bonds for Carleton Lofts Limited Partnersiup for the development of 170 rental housing units located at 2285-2341
UniversityAvenue West.
idations: Approve (A) or R
Planning Commission
CIB Committee
Civil Service Commission
Personal Service Contracts Must Answer the Following Questions:
1. Has this person/firm ever worked under a contract for this department?
Yes No
2. Has this person/firm ever been a city employee?
Yes No
3. Dces this persoNfirm possess a skill not normally possessed by any
current city employee?
Yes No
Eaplain all yes answers on separete sheet and attach to green sheet
� Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
. On April 27, 2005, the HRA approved a resolurion directing staff to prepaze a tax increment financing plan, a development agreement,
I and a Housing Program fox the Cazleton Place Loft. This is the prelixninary approval to issue up to $26,000,000 in tax exempt bond
_ � authority.
Advantapes If Approved: -
The Developers wi11 be able to pxoceed with the development of approxunately 17Q units of affotdable Tental housing.
DisadvanWqes If Approved:
None.
DisadvanWges If NotApproved:
The project would not move forwazd.
RE�EIVED
AU6 2 6 2005
MAYOR'S OFFICE
Total Amount of 26000000 Cost/Revenue Budgeted:
Transaction:
Fundina source: Conduit Bond Financing nctiviri Number. �,�—' �,��,jyr,`���
Financial Information: a�d TIF ��. � (
(Euplain)
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